SINGAPORE (Oct 13): Palm oil may break a support at 2,163 ringgit per tonne and fall more towards the next support at 2,125 ringgit, as a correction from the Oct. 1 high of 2,223 ringgit has not completed.
The correction consists of three waves, with the current third wave labelled c likely to approach the trough of the first wave, the wave a, at 2,137 ringgit. A Fibonacci projection analysis on the target of the preceding wave (c) reveals a support at 2,163 ringgit, the 38.2 percent level, which temporarily holds the wave c from falling towards 2,125 ringgit, the 23.6 percent level.
Strategically, the target at 2,125 ringgit will be confirmed when the support at 2,163 ringgit is broken.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. **